The House of Representatives recently passed the Worker, Retiree and Employer Recovery Act (H.R. 7327) and has come through on a move that will likely make retirees smile a little in our down economy (and hugely down stock market). The act essentially lets retirees suspend requirement minimum distributions from all defined-contributions plans, including but not limited to 401Ks, 403Bs, 457Bs, and IRA accounts. This is fantastic news as retirement accounts, mine included, have been down 40% or so on the year. While it remains to be seen whether another year will help, it certainly doesn’t hurt. Unfortunately, the legislation comes too late for 2008 so you’ll still need to take your RMD this year or face a penalty.
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One response to “House Suspends Required Minimum Distributions for 2009”
If there is no REQUIRED minimum distrib for 2009, does that mean that if you DO take a withdrawal from a 403(b), HR10 or Pension in 2009 that the entire withdrawal would be subject to the 20% mandatory federal income tax withholding ?